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No Q2 Surprises Expected at CBS

8/01/2009 2:00 AM Eastern

Wells Fargo Securities analyst Marci Ryvicker isn't expecting any surprises from CBS when it reports second-quarter earnings next week (Aug. 6), adding that the broadcaster should meet already adjusted analyst estimates.

“Given that Street estimates for CBS have continued to come down over the past month or so, we do not anticipate another significant miss like what we saw in Q1,” Ryvicker wrote. In the first quarter, CBS missed most analysts' expectations, as revenue plunged 13%, operating income before depreciation and amortization (OIBDA) dipped 61% and net losses were 8 cents per share, below the expected loss of 7 cents per share.

Ryvicker added that her estimates for CBS in the second quarter remain unchanged. She expects revenue for the broadcaster to dip 13% to $3.05 billion, in line with analysts' estimates. Ryvicker also wrote that CBS should report OIBDA of about $369 million, a 53% decrease compared to last year. Earnings per share should come in at about 6 cents, compared to analysts' consensus estimates of 8 cents per share.

Ryvicker expects CBS to provide some commentary on the broadcast upfront on its conference as well as from new chief financial officer Joseph Ianniello, who replaced the retiring Fred Reynolds on July 20.

“We believe CBS will have the most optimistic tone of all traditional media companies (once again) and we expect no major surprises this quarter,” Ryvicker wrote.

September